Econ 248 Final Review Latest 2026 Exam
Questions With 100% Correct Answers
Verified Updates Verified
By Experts 100% Success
Market failure cause: Externality - Correct Answer -When the costs/benefits
accrue to someone other than the buyer/seller (third party) i.e. cigarette smoke
Producing less than the equilibrium level means that: - Correct Answer -Potential
surplus is left unrealized
Overproduction subtracts from the surplus because: - Correct Answer -Society
values the use of the additional resources in other pursuits more than it values
consumption of that good.
Where is a competitive market most efficient? - Correct Answer -MC=MC, where
the max potential consumer surplus and producer surplus is generated
Describe the free rider problem. - Correct Answer -the situation that occurs when
some individuals receive benefits (get a free ride) without contributing to the cost.
, Public or private good: French fries - Correct Answer -Private
Public or private good: Court systems - Correct Answer -Public
Public or private good: Mail delivery - Correct Answer -combined public and
private; the law gives the postal service a monopoly but services such as package
delivery have private competition
Public or private good: Medical care - Correct Answer -both, depending on where
medical care is given from (government healthcare or private company)
Which of the following is a key difference between the economic activities of
government and those of private firms? - Correct Answer -Government has the
legal right to force people to do things; private firms do not.
The government's ability to coerce can enhance economic efficiency by: - Correct
Answer -correcting market failures
Questions With 100% Correct Answers
Verified Updates Verified
By Experts 100% Success
Market failure cause: Externality - Correct Answer -When the costs/benefits
accrue to someone other than the buyer/seller (third party) i.e. cigarette smoke
Producing less than the equilibrium level means that: - Correct Answer -Potential
surplus is left unrealized
Overproduction subtracts from the surplus because: - Correct Answer -Society
values the use of the additional resources in other pursuits more than it values
consumption of that good.
Where is a competitive market most efficient? - Correct Answer -MC=MC, where
the max potential consumer surplus and producer surplus is generated
Describe the free rider problem. - Correct Answer -the situation that occurs when
some individuals receive benefits (get a free ride) without contributing to the cost.
, Public or private good: French fries - Correct Answer -Private
Public or private good: Court systems - Correct Answer -Public
Public or private good: Mail delivery - Correct Answer -combined public and
private; the law gives the postal service a monopoly but services such as package
delivery have private competition
Public or private good: Medical care - Correct Answer -both, depending on where
medical care is given from (government healthcare or private company)
Which of the following is a key difference between the economic activities of
government and those of private firms? - Correct Answer -Government has the
legal right to force people to do things; private firms do not.
The government's ability to coerce can enhance economic efficiency by: - Correct
Answer -correcting market failures
